SAN FRANCISCO, CA - LoopNet, Inc., which operates the largest online commercial real estate marketplace, announced today that it has acquired privately-held REApplications, Inc., the leading provider of on-demand brokerage operations software. Founded in 1999 and headquartered in San Diego, California, REApplications provides a comprehensive integrated suite of commercial brokerage automation software. REApplications' products are focused exclusively on serving the needs of the commercial real estate sector and are web-based, available on-demand on a hosted basis, eliminating the need to install software. The REApplications product suite includes core functions for managing market research including property inventory, listings & comparables, commission management, customer relationship management (CRM), project tracking and transaction management.
With more than 100 client implementations, and thousands of licensed users, REApplications clients include some of the largest commercial brokerage and property valuation firms in North America. REApplications clients include Lee & Associates, Coldwell Banker Commercial, Grubb & Ellis BRE, Colliers Turley Martin Tucker, Cushman & Wakefield LePage, GVA Advantis and Integra Realty Resources, a leading property valuation firm.
"We are thrilled to welcome one of the most innovative commercial real estate technology firms into the LoopNet family," said Richard Boyle, LoopNet's Chief Executive Officer. 'Similar to LoopNet, REApplications has focused its efforts on building exceptional value and relationships with its clients. We compliment the entire REApplications team on their success in building a strong, client-centric, innovative business."
"LoopNet's acquisition of REApplications validates our original vision and strategy of supporting the entire lifecycle of a commercial property listing electronically. I think this will be a major milestone for the commercial real estate industry," said Jim Young, Co-Founder of REApplications. "LoopNet has an exceptional platform, people and clients that will allow REApplications to accelerate its success. The combination of REApplications and LoopNet brings together a comprehensive management and marketing solution for commercial real estate firms."
REApplications will operate as a wholly-owned subsidiary of LoopNet and the existing senior operating executives of REApplications will all remain post-acquisition. 'The entire REApplications team is excited to continue to focus on building the business and for the potential that the LoopNet acquisition provides. LoopNet's depth of resources and strong client-focused culture are very positive factors that will help REApplications achieve even better results. We look forward to continuing to deliver innovative products, outstanding service and exceptional value to our clients and to the opportunity to expand our overall customer base in tandem with LoopNet,' said Greg Ausley, Co-Founder and President of REApplications.
LoopNet has purchased REApplications for an aggregate cash consideration of $9.4 million. LoopNet expects that REApplications will contribute approximately $2.3 million in revenues for the remainder of 2008. While REApplications has been consistently profitable as a standalone business, LoopNet expects the transaction to have no significant impact on 2008 EBITDA, and to be dilutive to 2008 EPS in the range of approximately ($.02) per diluted share due to various acquisition and integration related expenses.
Source: Business Wire